Press Release from the Department of the Treasury, January 10, 2012Footnote 1
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated three individuals with ties to Sinaloa Cartel leader Joaquin Guzman Loera (a.k.a. Chapo Guzman) as Specially Designated Narcotics Traffickers (SDNTs) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). As a result of today's action, U.S. persons are prohibited from conducting financial or commercial transactions with the designees and any assets they may have under U.S. jurisdiction are frozen.
“Today marks the fourth time in the past year that OFAC has targeted and exposed the support structures of the organization led by Chapo Guzman, the world's most powerful drug trafficker,” said OFAC Director, Adam J. Szubin. “OFAC will continue to work with law enforcement and foreign counterparts to help disrupt, and eventually dismantle, Chapo Guzman's criminal empire.”
Two of the individuals designated today, Mexican nationals Oscar Alvarez Zepeda and Joel Valdez Benites, are from Culiacan, Sinaloa, Mexico. The other individual, Colombian national Carlos Mario Torres Hoyos, is from Medellin, Colombia. These three individuals provide material support to the drug trafficking activities of Guzman Loera and the Sinaloa Cartel and also have ties to Colombian drug trafficker Jorge Milton Cifuentes Villa. Oscar Alvarez Zepeda is the brother of the previously-designated Mexican national Alfredo Alvarez Zepeda. The Alvarez Zepeda brothers are relatives of Chapo Guzman.
Guzman Loera and the Sinaloa Cartel were identified by the President as drug kingpins pursuant to the Kingpin Act in 2001 and 2009, respectively. OFAC designated Cifuentes Villa as an SDNT in February 2011 along with more than 70 other individuals and entities. Guzman Loera and Jorge Milton Cifuentes Villa were indicted on drug trafficking and/or money laundering charges in the U.S. District Court for the Southern District of Florida in November 2010. In February 2011, Jorge Milton Cifuentes Villa was also indicted on drug trafficking charges in the U.S. District Court for the Southern District of New York.
OFAC coordinated on this investigation with the Drug Enforcement Administration. Today's action is part of ongoing efforts pursuant to the Kingpin Act to apply financial measures against significant foreign narcotics traffickers and their organizations worldwide. Treasury has designated more than 1,000 individuals and entities pursuant to the Kingpin Act since June 2000.
Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.
Press Release from the Department of the Treasury, January 19, 2012Footnote 2
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced the designation of Guatemalan national Marllory Dadiana Chacon Rossell and seven other individuals and entities connected to Chacon Rossell's drug trafficking and money laundering organization as Specially Designated Narcotics Traffickers (SDNTs). Today's action, taken pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), prohibits U.S. persons from conducting financial or commercial transactions with these entities and individuals and freezes any assets the designees may have under U.S. jurisdiction.
Marllory Dadiana Chacon Rossell leads a drug trafficking and money laundering organization based out of Guatemala with operations in Honduras and Panama that supplies the Mexican drug cartels. Chacon Rossell is believed to be one of the most prolific narcotics traffickers in Central America. She is responsible for transshipping thousands of kilograms of cocaine per month through Guatemala, into Mexico, and on to the United States. Chacon Rossell is also believed to launder tens of millions of U.S. dollars in narcotics proceeds each month, making her the most active money launderer in Guatemala.
“Marllory Chacon's drug trafficking activities and her ties to the Mexican drug cartels make her a critical figure in the narcotics trade,” said OFAC Director Adam J. Szubin. “By designating Chacon, OFAC is disrupting those activities and closing off from the U.S. financial system the network of companies aiding Chacon's illicit activities.”
OFAC is also designating Jorge Andres Fernandez Carbajal, Chacon's husband, a Honduran citizen responsible for providing logistical support for his wife's organization. Hayron Eduardo Borrayo Lasmibat and Mirza Silvana Hernandez De Borrayo, both Guatemalan nationals, are also being designated today for providing support to Marllory Chacon's drug trafficking activities. OFAC is also designating two Guatemalan companies, Bingoton Millonario and Revoluciones Por Minuto Aceleracion S.A., which are owned, controlled, or directed by Mirza Silvana Hernandez de Borrayo and Hayron Eduardo Borrayo Lasmibat, and two Panamanian companies, Andrea Yari S.A. and Fer'Seg S.A, which are owned, controlled, or directed by Jorge Andres Fernandez Carbajal.
OFAC coordinated on this investigation with the Drug Enforcement Administration. Today's action is part of ongoing efforts pursuant to the Kingpin Act to apply financial measures against significant foreign narcotics traffickers and their organizations worldwide. The Treasury Department has designated more than 1,000 individuals and entities pursuant to the Kingpin Act since June 2000.
Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.
Joint Statement by the Dominican Republic-Central America-United States Free Trade Commission, January 23, 2012Footnote 3
The following joint statement was released at the closing of the Dominican Republic-Central America-United States Free Trade Commission meeting in Miami, Florida
Anabel González, Minister of Foreign Trade of Costa Rica; Yahaira Sosa representing the Minister of Industry and Trade of the Dominican Republic; Mario Roger Hernández, Vice Minister of Economy for El Salvador; Maria Luisa Flores, Vice Minister of Economy for Guatemala; José Francisco Zelaya, Secretary of State, Office of Industry and Commerce for Honduras; Cristian Martínez, representing the Minister of Development, Industry and Commerce of Nicaragua; and Ambassador Miriam Sapiro, Deputy United States Trade Representative for the United States; are pleased to release the following Joint Statement, highlighting the work accomplished at the second meeting of the Dominican Republic-Central America-United States (CAFTA-DR) Free Trade Commission held on January 23, 2012, in Miami, Florida.
Increasing Trade and Investment under CAFTA-DR
At the CAFTA-DR Free Trade Commission (FTC) meeting today, as we approach the six-year anniversary since the first set of countries implemented the Agreement, we again reaffirm our obligation and shared goal of effective implementation of the Agreement. We recognize that opportunities for our businesses, farmers, ranchers, and workers are enhanced by full and accurate implementation and ongoing review of the commercial and institutional provisions contained in the CAFTA-DR Agreement (Agreement). Full implementation of the Agreement will serve to foster job creation and increase the economic prosperity of all of our citizens.
We reviewed trade and economic flows within the CAFTA-DR region. The Agreement continues to yield positive results and contribute to significant increases in trade among our countries. Trade between the United States and the Central American partners and the Dominican Republic experienced significant growth since we met last year in El Salvador, growing from $44 billion in the first eleven months of 2010 to $54 billion in the equivalent period during 2011, a 23 percent increase. Meanwhile, intra-regional trade among Central American countries and the Dominican Republic reached $3.8 billion in the first half of 2011, which represented a growth rate of 18 percent in relation to the same period in 2010. We recognize the importance of continuing to promote economic growth and prosperity and commit to intensify our efforts toward regional integration. We firmly believe the Agreement is key to facilitating sustainable, broad-based economic growth throughout our region and look forward to the implementation of trade facilitation projects that will promote our region's competitiveness.
The Agreement has been an important catalyst in facilitating our competitiveness in the global environment. By working together to identify and address ways to facilitate trade we can improve efficiencies of business operations, enhance competitiveness, generate new opportunities and expand and broaden the benefits of the Agreement.
Focusing on Implementation and Strengthening the Agreement
At our last meeting we agreed to a series of changes to the Agreement's rules of origin for textiles and apparel goods. We determined that it is timely to consider possible modifications and updates to the Agreement's rules of origin for non-textiles and non-apparel goods. We established an ad hoc working group under Article 4.14 to consider modifications of the CAFTA-DR rules of origin and we instructed it to meet within 60 days to initiate its work.
We reviewed the progress made on updating the CAFTA-DR rules of origin to correspond to the 2012 changes in the Harmonized System (HS) nomenclature and thanked the technical experts for their work. We recognized the importance of this project in easing customs administration for our customs authorities, producers, and exporters and instructed our technical teams to conclude this update for our signature within 60 days.
We commended the experts for the work being undertaken to update the special rules of origin provided for in Appendix 3.3.6 to correspond to the changes in the HS nomenclature. We encourage the conclusion of this work as soon as possible in accordance with paragraph 6 of the Annex. Once consultations are concluded and the work is finalized we look forward to promptly adopting these changes.
With respect to the remuneration of panelists, assistants, experts, and the payment of their expenses, we will meet by video conference on or before February 15, 2012, to reach an agreement, recognizing the importance of an effective dispute settlement procedure that ensures each country's rights and benefits under the Treaty.
We reviewed the status of the implementation of the modifications to the textile and apparel product rules of origin and look forward to their implementation as soon as possible.
We recognize the importance of transparency and maintaining communication with stakeholders. As we move forward, we will continue to promote an open dialogue and use mechanisms for receiving meaningful public comment, as part of our commitment to public engagement.
Broadening and Deepening the Benefits and Trade Facilitation
To broaden and deepen the benefits of the Agreement and create new jobs in our respective countries, at our last meeting we agreed to cooperate on new initiatives. We received a report from the Inter-American Development Bank (IDB) on progress under the CAFTA-DR Trade Facilitation Initiative, thanked them for their valuable support and expressed our desire to continue this partnership. We look forward to the CAFTA-DR Public-Private Sector Dialogue on Trade Facilitation to be held tomorrow here in Miami. This event will help identify the challenges that the private sector faces to the efficient flow of trade and to exchanging views on priorities and best practices in the areas of Customs and Trade Facilitation, Logistics and Supply Chains, and Technical Standards. We thank the IDB for its role in planning and organizing this important event and also thank the Association of American Chambers of Commerce in Latin America (AACCLA) for its cooperation. We have instructed our senior officials to meet by the end of the second quarter of 2012 to consider the adoption of three concrete projects and their roadmap for implementation and express our interest in continuing to receive IDB's support in their identification and implementation. We recognized the work carried out so far by our technical Committees on the priorities identified in the Technical Barriers to Trade (TBT) and Customs areas, in particular the successful TBT workshop with private sector participants held in Costa Rica in early December 2011. We urge continuation of these efforts and look forward to identifying further cooperative endeavors and to receiving a report on progress at the next Free Trade Commission meeting.
To further our support for the vital role that small- and medium-sized enterprises (SMEs) play in creating jobs in all of our countries, we reviewed ongoing work to help them take advantage of opportunities under the Agreement. We appreciated the update from the Center for the Promotion of the Micro and Small Enterprise in Central America (CENPROMYPE) on the region-wide sharing of country best practices for supporting small businesses which seek to engage in trade and on joint efforts to establish Development Centers (SBDCs) for Micro- and Small-Businesses throughout the region with the goal of linking to an online trade assistance and information portal for SBDC centers and small businesses in the United States at http://www.SBDCglobal.com. We recognized the intensified interaction among the entities responsible for SMEs in each of our countries and the strides in regional projects and approaches to advance this initiative.
We thank the IDB for its support and assistance in developing a CAFTA-DR textile and apparel Sourcing Directory to enhance communication and sourcing between buyers and manufacturers within the region and its presentation on the sourcing directory. This collaborative effort has already been instrumental in encouraging integrated supply chains, growing regional textiles trade, assisting producers in capitalizing on the benefits of the Agreement, and overall in increasing the competitiveness of our regional industry.
Press Statement by Secretary of State Clinton, January 25, 2012Footnote 4
The final report of the Organization of American States' (OAS) election observation mission to Nicaragua supports the democratic aspirations of the Nicaraguan people and expresses many of the concerns we share with regard to the conduct of recent elections.
As noted by international observers and Nicaraguan civil society groups, Nicaragua's recent elections were not conducted in a transparent and impartial manner, and the entire electoral process was marred by significant irregularities. The elections marked a setback to democracy in Nicaragua and undermined the ability of Nicaraguans to hold their government accountable.
The OAS report provides a basis for the OAS to assess all available initiatives to strengthen democracy in Nicaragua, consistent with the principles enshrined in the Inter-American Democratic Charter. We will work with our partners around the Americas and elsewhere to conduct such an assessment, so as to hold the Government of Nicaragua accountable for the timely implementation of the report's recommendations. We also look forward to reviewing the report of the European Union's election observation mission, which is expected soon.
As part of a review of our assistance and policy toward Nicaragua, the United States will continue to apply aggressive scrutiny to project loans at the Inter-American Development Bank and World Bank, and we will oppose any loan proposals that do not meet these institutions' high standards, or do not provide sufficient development impact.
The United States calls on the Nicaraguan government to uphold democratic processes and protect universal human rights. We will continue to support civil society and promote human rights in Nicaragua. The Nicaraguan people, like people everywhere, deserve the right to have their voices heard; they deserve no less than fair, free, transparent elections, and leaders who are accountable to them.
Remarks by Secretary of State Clinton, February 20, 2012Footnote 5
Secretary Hillary Clinton gave the following remarks in Los Cabos, Mexico
Secretary Clinton. Good morning. It's a great pleasure to be here for the signing of this groundbreaking agreement. And I am honored that President Calderon is here with us. Thank you, sir, for being here. It is under your leadership and the leadership of President Obama that we pursue this important agreement. And I want to thank my friend and colleague, Secretary Espinosa, with whom I have worked very closely over the last years, for all of her important participation. And thanks, too, to Secretary Herrera and Secretary Salazar and all of our teams who worked tirelessly to achieve this.
I often say that foreign policy must deliver concrete results for the people of our countries, and today we are doing just that—following through on the commitment that Presidents Calderon and Obama made in 2010 to improve energy security for both countries and to ensure a safe, efficient, responsible exploration of the oil and gas reservoirs in the Gulf of Mexico.
At a time when we are working hard to both secure energy supplies and shift to more environmentally appropriate means of extracting fossil fuels, but also adding immeasurably to our search for renewable energy, this agreement is a win-win. These reservoirs could hold considerable reserves that would benefit the United States and Mexico alike.
But they don't necessarily stop neatly at either of our maritime boundaries, which could lead to disputes that would then interfere with our countries and companies doing the hard work of discovering what is available to us. If a reservoir straddles the boundary, then there would be disputes over who should do the extraction and how much they should extract. The agreement we sign today helps prevent such disputes. It also helps promote the safe, efficient, and equitable exploration and production of cross-boundary reservoirs. Each country maintains its own right to develop its own resources.
But this agreement creates new opportunities. And for the first time, American companies will be able to collaborate with PEMEX, their Mexican counterpart. In tough times like these, we need to make the most of every opportunity to create jobs, to foster economic growth and energy security, while managing our resources and our environment responsibly for future generations.
Our actions today are further proof of how Mexico and the United States come together to solve shared challenges. From our earliest days, the Gulf of Mexico has been a source of unity for our peoples and our countries. And the steps we are taking today will help make sure it remains that way for decades to come.
Again, thank you very much to all who helped make this agreement a reality.
